Minnesota Minimum Wage Increases for 2018

While some consider New Year’s Day to be a holiday, employers in Minnesota will have to get up bright and early to make sure that mandatory workplace posters are updated with new state minimum wage rates effective as of January 1, 2018. Employers operating in the city of Minneapolis will also be required to post the Minneapolis Employment Rights Poster with the new municipal minimum wage.

Luckily, though, you’ll have plenty of time to prepare for compliance. The 2018 Minnesota Minimum Wage Peel ‘N Post™ and Minneapolis Employment Rights Poster with 2018 minimum wage rates are now available from CPC. Read on to learn more about these important employer updates.

Minnesota Minimum Wage Rises After Year-Long Break

2018 Minnesota Minimum Wage Peel 'N Post - Mobile Poster PakThe Minnesota Department of Labor and Industry has updated its mandatory Minimum Wage notice with 2018 rates. The notice has also undergone a redesign which incorporates the state’s new logo.

The Minnesota minimum wage previously underwent a series of scheduled increases which ended in August of 2016. From 2018 on, the rates will rise in accordance with increases to inflation as measured by the implicit price deflator, which provides information on price changes to all goods and services which are included in the gross domestic product (GDP). This differentiates Minnesota from many other states with inflation-influenced minimum wages which tie their rates to changes in the Consumer Price Index, measuring price changes only to goods and services which are commonly consumed by households.

Between August 2016 and August 2017, the change in the U.S. GDP price deflator was an increase of 1.56%. As a result, on January 1, 2018, the Minnesota minimum wage for large employers will rise to $9.65 per hour. (A large employer is defined as any enterprise with an annual gross volume of sales made or business done of $500,000 or more.)

Small employers will be required to pay their employees a minimum wage of $7.87 per hour. The small employer minimum wage rate also applies to employees aged 17 or younger (youth wage), 18- or 19-year-old employees during the first 90 consecutive days of employment (training wage), and employees working under a J-1 Visa.

If you already own one of Compliance Poster Company’s signature products, you can update with the quick and easy 2018 Minnesota Minimum Wage Peel ‘N Post™ sticker for only $9.95. If you’re looking for a complete compliance solution, order an up-to-date Minnesota All-On-One™ Labor Law Poster, consolidating all state and federal required postings onto one convenient and attractive wall poster, or a Mobile Poster Pak™ booklet for mobile and off-site workers.

Minneapolis Minimum Wage Added to Sick and Safe Time Poster

Minneapolis Employment Rights PosterThe City of Minneapolis has also updated its mandatory notice to employees with information on the new Municipal Minimum Wage Ordinance.

The city previously provided a poster with information on the Sick and Safe Time Ordinance which entitles employees to time off from work for health and safety reasons. Soon after Sick and Safe Time went into effect in July, the Minneapolis City Council passed a Minimum Wage Ordinance which will eventually increase the minimum wage to $15 within the city.

Beginning in January 1, 2018, large businesses (defined as enterprises with 100 or more employees) must pay their employees a minimum wage of $10 per hour. The ordinance does not go into effect for small businesses (99 or fewer employees) until July 1, 2018, when the rate will also increase again for large employers.

Small Business Large Business
January 1, 2018 $10.00
July 1, 2018 $10.25 $11.25
July 1, 2019 $11.00 $12.25
July 1, 2020 $11.75 $13.25
July 1, 2021 $12.50 $14.25
July 1, 2022 $13.50 $15.00
January 1, 2023 Increase determined by inflation
July 1, 2023 $14.50
January 1, 2024 Increase determined by inflation
July 1, 2024 Equal to Large Business
January 1, 2025 and subsequent Increase determined by inflation Increase determined by inflation

The new employee notice poster displays a table with scheduled minimum wage rates for both large and small employers through 2024, and provides additional information on Sick and Safe Time requirements, such as how much time off must be accrued and the purposes for which it can be used.

The Minneapolis Employment Rights Poster must be posted in every business facility within the geographic limits of Minneapolis, in English and in each of the primary language(s) spoken by employees employed at that work site. Currently CPC provides this poster in English; please speak to a Compliance Advisor at 1-800-817-7678 if you require the Minneapolis Employment Rights Poster in an additional language.

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